The currency pair remains under pressure amid easing Fed rate hike expectations and geopolitical developments ahead of key US jobs data.
The USD/CHF pair edged higher in early European trading on Wednesday but stayed below the 0.8100 level. Weakness in the US Dollar (USD) persisted due to growing expectations of Federal Reserve rate cuts and optimism over a potential US-Iran deal, capping gains for the pair.
Technical indicators show modest bullish momentum, with the Relative Strength Index (RSI) near 52 and the Moving Average Convergence Divergence (MACD) turning slightly positive. However, resistance near 0.8100, aligned with the 100-hour Exponential Moving Average (EMA) and 38.2% Fibonacci level, continues to limit upside potential.
Traders are awaiting Friday’s US Nonfarm Payrolls (NFP) report for further clues on the Fed’s policy path, while Middle East developments remain a key driver for the USD. Overhead resistance levels are seen at 0.8121, 0.8141, and 0.8169, with stronger barriers near 0.8205.